tag:blogger.com,1999:blog-6321089372587128676.post1629472934387850929..comments2023-10-17T10:01:00.917-04:00Comments on Distressed Debt Investing: Distressed Debt Example - AccurideUnknownnoreply@blogger.comBlogger13125tag:blogger.com,1999:blog-6321089372587128676.post-26417818434221158872010-02-05T01:40:28.836-05:002010-02-05T01:40:28.836-05:00Just to follow up in case in anyone is still watch...Just to follow up in case in anyone is still watching - I have the same question in light of the objection to the plan filed by the equity committee. Seems like they make a pretty good case that the current plan is a giveaway to the ad hoc noteholders group, who at this point have already sold most of their notes and are just there for the backstop investment, especially given the possibility of alternative financing.<br />Obviously the equity committee's valuation is probably aggressive, but it has to be more realistic than the one in the current plan. Any thoughts on whether they might be able to up the distribution to the old equity? They say 26.5%, which is probably high, but is 10-15% out of the realm of possibility?<br />The judge's ruling requiring 2019 disclosure seems to indicate some sympathy to the equity committee, so feels like there might be a chance of postponing the confirmation at the hearing on Feb 8, or rejecting the plan if they hold the hearing on Feb 10. Thoughts?p2noreply@blogger.comtag:blogger.com,1999:blog-6321089372587128676.post-77723351023767836212009-12-30T18:07:42.043-05:002009-12-30T18:07:42.043-05:00Sorry, it is Blackrock Financial not Blackstone. ...Sorry, it is Blackrock Financial not Blackstone. Players names change, but issue at hand is the same. They are being paid richly to participate in an offering that was already financially engineered to make the participants money.persistentonehttps://www.blogger.com/profile/04962190758037772672noreply@blogger.comtag:blogger.com,1999:blog-6321089372587128676.post-15620394676425334522009-12-29T18:40:23.128-05:002009-12-29T18:40:23.128-05:00Does anyone know of any groups online that are act...Does anyone know of any groups online that are actively discussing the Accuride bankruptcy with any intelligence (that excludes Yahoo by definition )?<br /><br />The third amendment to the reorg plan for Accuride pays Blackstone nearly 20% of the newly organized entity for "backstopping" the rights offering. <br /><br />That looks outrageous to me. Is that level of dilution considered <br />ordinary or reasonable for such cases?persistentonehttps://www.blogger.com/profile/04962190758037772672noreply@blogger.comtag:blogger.com,1999:blog-6321089372587128676.post-5815155102966329302009-11-23T20:58:42.287-05:002009-11-23T20:58:42.287-05:00Ninja, if you are author could you send me email a...Ninja, if you are author could you send me email at persistentone AT spamarrest.com and I wanted to ask about some of the math in your spreadsheet.<br /><br />$75 was a great offer to get given lack of trading. I finally got offered at $82 and $85. If you don't want any more, maybe you could throw me a favor and let me know who has them at $75. :)<br /><br />And congratulations on your buy at $25. You caught the exact bottom (or close enough).persistentonehttps://www.blogger.com/profile/04962190758037772672noreply@blogger.comtag:blogger.com,1999:blog-6321089372587128676.post-7497647752779548632009-11-23T20:30:37.022-05:002009-11-23T20:30:37.022-05:00Persistentone:
I was shown some of these bonds tod...Persistentone:<br />I was shown some of these bonds today in a $75-ish context (5 pts below my purchase price in the write-up) so this is actionable. Yes, the trading is choppy...welcome to distressed. <br /><br />If it makes you feel better I bought some this summer below $25 as well.Ninjanoreply@blogger.comtag:blogger.com,1999:blog-6321089372587128676.post-26716935433962469662009-11-23T20:25:45.837-05:002009-11-23T20:25:45.837-05:00hfguy: I included some comps in the write up. It&#...hfguy: I included some comps in the write up. It's important to note that this is a Tier I commercial vehicle supplier and not a Tier I auto supplier. There are big differences in the two businesses w/ the commercial being more favorable (to suplliers). <br /><br />I'll update on the equity committe, I originally submitted the idea before they were appointed last wk.Ninjanoreply@blogger.comtag:blogger.com,1999:blog-6321089372587128676.post-46796897512959289892009-11-23T17:45:11.056-05:002009-11-23T17:45:11.056-05:00what about the equity committee? why is 5.5x the r...what about the equity committee? why is 5.5x the right valuation - it seems high for a Tier Ihfguyhttps://www.blogger.com/profile/14008660460566660817noreply@blogger.comtag:blogger.com,1999:blog-6321089372587128676.post-51676099122394427852009-11-23T12:58:51.340-05:002009-11-23T12:58:51.340-05:00persistentone - would you please email me ... thx ...persistentone - would you please email me ... thx - HunterHunterhttp://www.distressed-debt-investing.comnoreply@blogger.comtag:blogger.com,1999:blog-6321089372587128676.post-42140168165485804542009-11-23T10:53:07.475-05:002009-11-23T10:53:07.475-05:00Well, this is a nice write up, unfortunately it do...Well, this is a nice write up, unfortunately it does not look like it is actionable information. The day that Accuride announced it had submitted the reorganization plan all trades in their bonds stopped. <br /><br />Had this write up appeared sometime between October 8, 2009 when the new plan was announced and November 18, 2009 when it was submitted to court for approval, readers might have been able to buy.<br /><br />Even then, the bond traded sporadically and only in huge lots, which I guess is consistent with its originally being a reg 144 offering (i.e., mostly institutional sellers).persistentonehttps://www.blogger.com/profile/04962190758037772672noreply@blogger.comtag:blogger.com,1999:blog-6321089372587128676.post-65670906092035168122009-11-23T08:30:44.425-05:002009-11-23T08:30:44.425-05:00I am glad to have come across this example of a di...I am glad to have come across this example of a distressed debt as I see more clearly now how they go about facing the financial problem. It is not a surprise that Accuride ran into trouble because I think that all those that have something to do with the auto industry will experience the same. It is just too bad because I think it is a good company. <br /><br />Evelyn Guzman<br />http://www.debtchallenges.com (If you want to visit, just click but if it doesn’t work, copy and paste it onto your browser.)Randeghttps://www.blogger.com/profile/01323089616888583745noreply@blogger.comtag:blogger.com,1999:blog-6321089372587128676.post-40755766796230849082009-11-23T02:24:02.010-05:002009-11-23T02:24:02.010-05:00This comment has been removed by the author.persistentonehttps://www.blogger.com/profile/04962190758037772672noreply@blogger.comtag:blogger.com,1999:blog-6321089372587128676.post-5763460856990388682009-11-23T02:18:24.516-05:002009-11-23T02:18:24.516-05:00This comment has been removed by the author.persistentonehttps://www.blogger.com/profile/04962190758037772672noreply@blogger.comtag:blogger.com,1999:blog-6321089372587128676.post-79136635952339487202009-11-23T01:45:12.975-05:002009-11-23T01:45:12.975-05:00You may want to add the terms of the $140M convert...You may want to add the terms of the $140M convertible (coupon and conversion terms)into your article.persistentonehttps://www.blogger.com/profile/04962190758037772672noreply@blogger.com